MEDIA REACTION; RECONCILIATION BETWEEN THE KOREAS;

UNCLAS BUENOS AIRES 001974 SIPDIS STATE FOR INR/R/MR, I/GWHA, WHA, WHA/PDA, WHA/BSC, WHA/EPSC CDR USSOCOM FOR J-2 IAD/LAMA SIPDIS E.O. 12958: N/A TAGS: KPAO OPRC KMDR PREL SUBJECT: MEDIA REACTION; RECONCILIATION BETWEEN THE KOREAS; ECUADORIAN POLITICAL REFORM; ARGENTINA'S TIES TO THE IMF AND ICSID; 10/03/07 ¶1. SUMMARY STATEMENT Major international opinion pieces today include possible reconciliation between the Koreas; anticipated political reform in Ecuador; and ICSID rulings on Argentina. ¶2. OPINION PIECES AND EDITORIALS - "A long road back home" Hinde Pomeraniec, political columnist of leading "Clarn," writes (10/03) "Hopeful people see yesterday's step taken by Korean leaders as the beginning of the reconciliation of the country, which is still at war. They imagine the possibility of a long-term agreement reached for the first time outside of the protectionist pressures of the US and China, similar to those from Japan and Russia in the past. "The nuclear issue will not be on the negotiating table this time and it makes sense - deterrence talks continue and for the first time since Bush took over, Washington has approved sending energy supplies to Pyongyang in response to the disarmament implemented by Kim Jong Il's regime. "For South Koreans who want unity, the time is coming to go back home, although in order to achieve this objective, they should put up with the bitter step of renouncing claims on human rights abuses at least for now." - "Ecuador votes in favor of political reform" Leading "Clarn" editorializes (10/03) "Ecuadorian President Rafael Correa has paved the way for progress on promised reforms without jeopardizing the country's political stability. "After having won the second round of elections and obtained the necessary support to call a constitutional amendment, Correa has obtained another unquestionable victory... "The fact that President Correa is not promoting indefinite reelection (along the lines of Venezuelan Hugo Chvez) is encouraging. Less promising is his objective of dissolving Congress, which is dominated by the opposition. "The main problems Ecuador must face are socio-economic (the fight against poverty and inequality),and political (chronic instability that has caused the downfall of three presidents during the last ten years). Perhaps, Correa has found the key to the solution of both challenges, but he will have to obtain steady consensus." - "The ICSID, just as similar to and different from the IMF" Lucio Di Mateo, contributor to business-financial "El Cronista," writes (10/03) "Argentina's relationship with the ICSID (International Center for Settlement of Investment Disputes) has two similarities with the country's relationship with the IMF - one circumstantial and the other structural, although both are long-term. There is a major difference, however - the Argentine Government may not get rid of the IMF as a result of the 2005 cash payment of ten billion dollars. "The circumstantial similarity... is that ICSID depends on Argentina as much as the IMF used to. The current IMF adjustment proves it - once the debts of Argentina, Brazil and Turkey were paid off, the IMF was left without its main sources of income. ICSID figures also mark its dependence on Argentina - one out of every 4 pending cases are complaints filed by companies against the country... "The structural similarity is that the ICSID and the IMF, as well as the World Bank, are part of the 'Bretton Woods System'... "The problem for Argentina is that they were designed by and for powerful countries, whose interests they defend. This is why if Argentina obtains a favorable ICSID decision, or a corporation withdraws a complaint at the ICSID, those will only be exceptions to an unfavorable ruling." To see more Buenos Aires reporting, visit our classified website at: http://www.state.sqov.gov/p/wha/buenosaires WAYNE